If you don't know what "hot fuel" is and why it is costing consumers billions of dollars then read on and watch this short video.
I must admit that it is the first time that I am hearing about this problem and am outraged that oil companies can bilk billions from American consumers.
The controversy centers around the oil industry's "century-old practice of pricing gasoline on a standard of 60 degrees." Consumers in states where the average temperature is above the standard say that this practice is bilking them out of a lot of money, because "[a]s temperatures rise during warmer months, the gasoline expands, meaning customers get less energy per gallon." In Canada, where the oil companies were losing money because the average temperature is less than 60 degrees, they passed laws allowing for prices at the pump to reflect changes in temperature. here in the U.S., Congress has estimated this practice to cost consumers $1.5 billion annually (others have a much higher number than this), but have not taken action to protect gas purchasers.
Another slap in the face to consumers is, when companies sell gas to each other and other large industries, like the airlines, they account for changes in temperature. So why can't consumers have the same benefit?
The Kansas City Star has been writing about this issue since 2006 and the Foundation for Taxpayer & Consumer Rights (FTCR), and their Oil Watchdog project, have also been spreading the word. It is slowly gaining national attention, but what is driving the attention now is a class action suit made up of consumers from 26 states, Washington, D.C. and Puerto Rico. Most recently, a federal judge in Missouri has allowed the case to move forward on all counts. (Click here to read the judge's opinion.) The case will move into the discovery phase, or better known as the "who, what, when, where" chapter. Independent truckers are pleased by the judges ruling because they know so well the cost of this scam to their bottom line. They have said,
America's truckers are closely watching the progress of this case. They want, and deserve to get the same miles per gallon from every fill-up. Especially since they are having to buy an extra 200 gallons, or so, every year due to hot fuel...
While the defendants say they are in full compliance with the law, ExxonMobile have been putting stickers on its pumps in California and Arizona about fuel energy being "affected by temperature" as a tactic to try and fend off the class action lawsuits against "hot fuel" sales.
The plaintiffs are looking forward to see how the defendants, who have known about this issue since the 1920s, but have managed to keep it under wraps until now, handle explaining this to the court and public.
Since Congress is not acting, I am glad that we still have the civil justice system to turn to in order to fight this powerful and wealthy industry.